The London Stock Exchange (LSE) has extended its relationship with low-latency trading services provider QuantHouse, to allow its exchange hosting clients to route orders to external destinations.
The new routing service will operate on QuantLINK, QuantHouse's proprietary fibre optic network, from within the LSE's hosting facility and provide access to US and European markets. As well as major equities markets, this includes BATS Exchange, Intercontinental Exchange, NYSE Arca and NYMEX in the US, Brazil's BM&F Bovespa, as well as Scoach, Eurex and NYSE Liffe in Europe. Asian markets are due to be added to the service in 2011.
QuantHouse, which already provides global market data LSE's hosted clients, is currently offering a free one month trial of the new service.
Prior to the addition of QuantLINK, the LSE's exchange hosting service only provided low-latency access to those platforms located in its hosting facility – Borsa Italiana and the Oslo Børs, which migrated on to the exchange's TradElect platform earlier this year.
Turquoise, the multilateral trading facility the LSE purchased at the start of this year is currently available via a low-latency link to its data centre, but will be moved into the hosting facility when the exchange migrates to its new Millennium Exchange trading platform later this year.
“Our aim is to enhance the exchange’s hosting value proposition to our co-location clients,” said Antoine Shagoury, chief information officer, London Stock Exchange Group. “The combination of this new low-latency order routing service, existing global market data service, and market centre proximity will enable our clients to efficiently execute multi-market trading strategies from our central London location.”
The LSE joins BATS Europe, currently the only other European trading venue to offer onward routing from its platform. Unlike BATS however, the LSE will offer a vanilla routing service via QuantHouse, allowing clients in the Exchange’s co-location facility to direct order flow to other venues. BATS Europe's service, RECYCLE, is an order routing strategy that sends any residual liquidity from its existing CYCLE strategy to an external venue, if it offers an equivalent or better price than that sought by the original order.